Bengaluru, India : 12th January, 2024 : Varthana, a leading Non-Banking Finance Company (NBFC) in the affordable education sector, has successfully secured a $ 14 million follow-on investment from the Blue Earth Capital platform (“BlueEarth”). Varthana provides loans to affordable private schools and students to enable them to unlock their full potential.
The investment comprises contributions from BlueEarth managed funds and partnerships. The additional capital will empower Varthana to expand its financial support to a wider network of affordable private schools nationwide, aligning with its overarching vision to enhance and transform the affordable education sector in India.
The rise of affordable private schools in India can be attributed to their sustainable, low-cost model, emphasizing efficiency and quality education. Despite their positive impact, these schools often encounter financial challenges that affect their growth and sustainability. Over the past decade, Varthana has played a crucial role by financing more than 9,500 affordable private schools and facilitating over 15,000 loans for school expansion and renovation. With a presence in 16 states/union territories and 40 branches, Varthana also extends its services to Tier III and Tier IV cities, significantly contributing to fostering accessible education in India.
Steve Hardgrave, the CEO of Varthana, said: "With this new investment, our commitment to transforming education in India will strengthen further. Varthana has consistently led efforts to bridge the access to quality education for low- and middle-income populations through financial support to budget private schools of India. We extend our heartfelt appreciation to Blue Earth Capital for joining us in our mission. With this investment, we aim to aspire more young minds in India for a better tomorrow."
Amy Wang, Head of Private Credit at Blue Earth Capital, stated: “We are excited to continue supporting Varthana, who has been a strong partner delivering unique high-impact social outcomes while demonstrating strong resilience throughout different market conditions. Today's follow-on investment will empower Varthana to expand its support to a wider network of affordable private schools as it resumed growth trajectory post COVID-19 pandemic. We believe this will have a tremendous impact on broadening the access to quality education in low-income communities in India."
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About Varthana
Varthana is a pioneer in the affordable education sector, headquartered in Bengaluru. It is the largest education Non-Banking Finance Company (NBFC) in India. Established in 2013, the organization has a presence in 16 states and union territories, through 40 branches and 150 spokes. Varthana aims to transform affordable education in India by catering to the needs of affordable private schools through financial assistance and academic support. It is also committed to serving domestic students attending college, technical training/short-term courses, and postgraduate studies by providing them with loans to continue education. Varthana aims to make education accessible to over 10 million students by 2025. For more information, visit varthana.com.
About Blue Earth Capital
Blue Earth Capital is a global, independent, specialist impact investor, headquartered in Switzerland, with operations in New York, London, and Konstanz. Blue Earth Capital seeks to address the world’s most pressing social and environmental challenges by delivering measurable impact alongside aiming for attractive and sustainable financial returns. The company operates dedicated private equity, private credit and fund solutions. Blue Earth Capital is owned by the Blue Earth Foundation, a Stiftung (charity/trust) registered in Switzerland that focuses on deep impact to support initiatives and business ventures to help deliver a more equitable and sustainable future. For more information, visit www.blueearth.capital.
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